Al Mazaya Holding Co. K. S. C. P. (HOLDING), Strategic Financial Planning Department, Kuwait
Abstract
During the past few years, the GCC region has witnessed the listing of several REITs on stock exchanges. This paper focuses on the ex-post absolute return performance of REITs listed on the Saudi Stock Exchange-Tadawul, the market with the highest coverage of listed REITs in the Middle East. The analysis places a particular emphasis on IPO primary investors, offering insights for prospective REIT investors considering participation in potential IPOs in the growing markets of KSA and the broader GCC region. From inception until a specified cutoff date, REITs on Tadawul displayed attractive dividend yields. However, our investigation, using absolute total return analysis across two holding period scenarios, revealed that primary investors, on average, experienced negative returns. This was attributed to REITs trading at a discount despite regular dividend distributions. Examining the price-to-NAV ratio, we found that, on average, REITs were also trading at a discount to NAV on the designated cutoff date. The findings of this study hold significance for investors and policymakers in the GCC region, providing insights for future research and investment strategies in the REITs market.
Diab, O. (2023). Performance of REITs in Saudi Stock Exchange: Emphasis on Return for IPO Investors. Management Studies and Economic Systems, 8(3/4), 9-19.
MLA
Oussama Diab. "Performance of REITs in Saudi Stock Exchange: Emphasis on Return for IPO Investors". Management Studies and Economic Systems, 8, 3/4, 2023, 9-19.
HARVARD
Diab, O. (2023). 'Performance of REITs in Saudi Stock Exchange: Emphasis on Return for IPO Investors', Management Studies and Economic Systems, 8(3/4), pp. 9-19.
VANCOUVER
Diab, O. Performance of REITs in Saudi Stock Exchange: Emphasis on Return for IPO Investors. Management Studies and Economic Systems, 2023; 8(3/4): 9-19.
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